Nigeria is rapidly emerging as a digital powerhouse in Africa, with internet and mobile phone usage consistently on the rise. By 2030, the country’s digital transformation market is expected to reach almost $27 billion. Yet, this impressive growth brings with it significant challenges, particularly in the realm of cyber-security.

Microsoft’s latest research reveals a troubling trend: AI-powered fraud attacks are escalating worldwide. As Nigeria’s digital marketplace expands, the risk of cyber threats grows proportionally, underscoring the urgent need for robust security measures to keep pace with the accelerated pace of digital growth.

AI is lowering the technical bar for cybercriminals, making it easier and cheaper to generate believable content for attacks at an unprecedented rate.

In Africa, generative AI is driving a new wave of fraud. According to Deloitte, Nigeria saw a sharp surge in cyber threats last year, with AI amplifying the scale and precision of cyber-attacks on a scale close to ‘pandemic-like’ proportions.

Deepfake incidents in Africa surged sevenfold from Q2 to Q4 of 2024, as AI tools made it easier to create fake identities and manipulate biometric data.

“AI technology is giving cybercriminals the tools to create incredibly deceptive scams. With the ability to draw on fake product reviews, AI-generated websites, deepfakes, and voice cloning, these scammers can carry out their campaigns on a massive scale while still appearing authentic. It’s vital for businesses and individuals in Nigeria to keep abreast of developments as these AI-driven tactics become increasingly sophisticated,” Managing Director, Microsoft Nigeria and Ghana, Ola Williams, said.

The company, according to the form CEO, is to help people across the country stay one step ahead, Microsoft’s Cyber Signals report offers insight into the most insidious AI scams on the rise. He listed them as e-commerce fraud.

Nigeria’s e-commerce adoption is surging, according to Statista, with user penetration surpassing regional averages. As one of the largest e-commerce markets in Africa, Nigeria is making significant strides.

However, the rise of AI has enabled the rapid creation of fraudulent e-commerce websites, which can now be set up in minutes. These sites mimic legitimate ones, making it difficult for consumers to distinguish between real and fake. AI-generated product descriptions, images, and reviews deceive customers into trusting these fake merchants.

He stated that AI-powered chatbots further complicate matters by interacting convincingly with customers, delaying chargebacks with scripted excuses and manipulating complaints to maintain a professional facade.

Job and employment fraud is also on the rise. Just six months ago, Nigeria’s National Information Technology Development Agency (NITDA) warned citizens about fake job offers. Generative AI has made it easier for scammers to create fake job listings, profiles, and email campaigns, making fraudulent offers harder to detect. What’s more, AI-powered interviews and automated emails enhance the credibility of these scams he stated.

He advised that to tackle this issue, job platforms should implement multifactor authentication to verify employer accounts and use fraud-detection technology to spot fake interviews created by AI, where facial expressions and speech might not match naturally.

Furthermore he advised Job hunters to watch for signs of job fraud, such as requests for payment, offers that seem too good to be true, unsolicited interview requests via text, and no formal communication channels.

According to him Scammers may also ask for personal information for “verification.” Job seekers should validate websites by checking for secure connections (https) and using tools like Microsoft Edge’s typo protection.

Williams revealed that Tech support scams are deceiving people into paying for unnecessary services by pretending there are problems with their devices or software. Scammers gain access to computers remotely, allowing them to steal information and install harmful software.

In April 2024, Microsoft Threat Intelligence reported that a cybercriminal group called Storm-1811 exploited Windows Quick Assist by pretending to be IT support. They used voice phishing techniques to impersonate legitimate organisations and gain access to users’ devices.He added that scammers often pretend to be IT support from well-known companies, using social engineering to gain trust and access.

He advised to effectively counter these scams, it’s important to educate employees about the correct procedures for getting helpdesk support. Implementing Zero Trust principles, which enforce the least amount of access necessary for accounts and devices, can also help reduce the damage if an account is compromised. Employees should be aware that unsolicited tech support offers are often scams and always seek tech support from trusted sources, he added.

“As Nigeria’s digital economy grows, the rise in AI-driven scams reminds us that vigilance, education, and robust security measures are essential. By understanding these threats and empowering ourselves with knowledge, we can create a safer digital world for all,” Williams said.